A company sells watches for $1,500. The unit variable cost is $500. Fixed manufacturing costs tota $50,000 and fixed selling and administrative costs totals $25,500. Calculate the CM per watch Calculate the B/E in unit and dollars per watch Calculate the MOS in units and dollars if the company sold 115 watch Calculate the number of watches the company must sell to earn a profit of $90,000 Draw graph showing clearly the SP, VC, FC, B/E. MOS

A company sells watches for $1,500. The unit variable cost is $500. Fixed manufacturing costs tota $50,000 and fixed selling and administrative costs totals $25,500. Calculate the CM per watch Calculate the B/E in unit and dollars per watch Calculate the MOS in units and dollars if the company sold 115 watch Calculate the number of watches the company must sell to earn a profit of $90,000 Draw graph showing clearly the SP, VC, FC, B/E. MOS

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 4MC

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